Turkey Inflation

Turkey: Inflation rises from January's 20-month low

March 3, 2015

In February, consumer prices rose 0.71% over the previous month, which was below January’s 1.10% increase. According to the statistical office, higher prices were recorded for food and non-alcoholic beverages, as well as for transportation. In contrast, lower prices were observed for clothing and footwear.

Annual inflation rose from 7.2% in January to 7.6% in February. January’s print had represented a 20-month low. February’s figure overshot market expectations of 7.4% inflation.

The core inflation index, which excludes more volatile categories such as unprocessed food and energy, increased a weak 0.01% in February (January: +0.63% month-on-month). Annual core inflation inched down from 8.9% in January to 8.1% in February.

The Central Bank of Turkey (CBRT) sees year-end inflation at 6.1% in 2015. FocusEconomics panelists expect inflation to close 2015 at 6.5%, which is down 0.1 percentage points from last month’s forecast. For 2016, the panel sees inflation moderating to 6.4% by year-end.

The current account balance recorded a USD 4.2 billion deficit in November, above market expectations of USD 4.0 billion, and a sizeable increase from the USD 2.2 billion shortfall recorded in November 2016.